Spain Sells Bonds in Market Test as Street Protests Loom
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Spain plans to sell as much as 3 billion euros ($3.7 billion) of debt today as rising borrowing costs threaten its access to capital markets and Prime Minister Mariano Rajoy faces a round of street protests.
Spain will auction bonds maturing in 2014, 2017 and 2019 as the Treasury continues to focus on shorter-dated debt to avoid paying the 6.99 percent yields investors demand to lend for a decade. Still, five-year benchmark yields rose to 6.41 percent today, narrowing the gap with 10-year yields to 58 basis points from as wide as 154 basis points in January.